Merchant Processing Technology has evolved significantly over the past few decades. Beginning in 1970 with the replacement of paper-based processes with centralized electronic authorization up until today’s smartphone technology. The market has become practically unrecognizable in comparison to its 1970s roots, which begs the question: where will the future of merchant processing take us?
With the advent of digital technology in full swing, merchant processing technology is focusing on how to take mobile payments to the next level. Wireless payment applications are becoming increasingly popular, paving the way for modern marketing techniques that are able to lock in on specific consumers at specific locations and times. Once a customer makes a purchase, their purchase information is recorded as background for future marketing tactics.
For years, credit card manufacturers looked for a more secure method of payment than the standard swipe of the magnetic strip at the terminal. Technology’s answer: NFC chip technology. NFC payment chips and their corresponding terminals have proven to be a much more secure method of payment for most users, helping consumers avoid today’s most common forms of credit card theft. While the number of merchant users is still on the smaller side, iPhone’s Apply Pay and Google Wallet have set out to change that.
The Near Future
Merchant processors are looking to lock in on users of prepaid credit and debit cards within the near future. Since these particular sectors are experiencing widespread growth, there is no doubt a pretty penny involved in tapping into their electronic buying potential. Many processors also promise an evolution when it comes to data security, managing the treat of fraud that seems to be ever more prevalent in our mobile-based society. This will likely mean a growth in chip and pin-based technologies.
While the future of merchant processing is still up in the air, it remains certain that the industry will see tremendous growth in the coming years. With the technology in place for substantial advancements, it’s only a matter of time before we see the benefits of increased mobilization and digital payment processes. The only question now is who will be the first to present it to the world?
For more information on merchant payment processing and how to take advantage of it in your own small business, contact Vision Payments today.